Understanding the difference between contingent and pending in the context of the Multiple Listing Service (MLS) is crucial for real estate professionals and buyers alike. Both terms are commonly used in the real estate industry to describe the status of a property, but they carry distinct meanings and implications for the transaction process.
Difference between contingent and pending in MLS:
Contingent:
When a property is listed as contingent in the MLS, it means that the sale of the property is dependent on certain conditions being met. These conditions could include the buyer’s home being sold, obtaining financing, a satisfactory inspection report, or other stipulations outlined in the purchase agreement. The property remains active on the market, and other buyers can still submit offers. However, the seller is not under any obligation to accept an offer until the contingencies are resolved.
Pending:
On the other hand, a property listed as pending in the MLS indicates that an offer has been accepted by the seller, and the transaction is in the process of being finalized. The sale is no longer active on the market, and other buyers cannot submit new offers. Pending status usually implies that the contingencies have been met, or the buyer has waived them. However, it’s important to note that pending status does not guarantee the sale will close. There could still be unforeseen issues that arise before the closing date, which may lead to the sale falling through.
Key Differences:
1. Offer Status: Contingent properties have not yet had an offer accepted, while pending properties have.
2. Market Activity: Contingent properties are still actively marketed and can receive offers, whereas pending properties are not listed for sale.
3. Contingencies: Contingent sales are subject to specific conditions that must be met before the sale can proceed, while pending sales imply that most, if not all, contingencies have been satisfied.
4. Seller’s Obligation: Sellers are not obligated to accept offers on contingent properties, but they are committed to accepting offers on pending properties.
Understanding the difference between contingent and pending in the MLS is essential for real estate professionals to effectively communicate with clients and manage expectations. For buyers, it’s crucial to recognize that a pending status does not guarantee a smooth transaction, and they should always work with a real estate agent to navigate the complexities of the process.
